AI Issue 11 2017

28 Acquisition International - November 2017 In a recent interview with the Local Manager of the Prudent Investment Fund’s Brazilian operation, Giovanni Cataldi, we had a chance to discuss some of the key elements leading up to Prudent Group’s (Prudent) success. rudent focuses on short-term corporate lending in Brazil. Through financing a broad range of businesses, mainly in non-cyclical segments of the economy, the firm aim to create long-term mutually beneficial relationships with its borrowers and, furthermore, strive to protect the investments with credit insurance when possible. Giovanni describes what services the firm offers specifically within the hedge fund space, and how he and the team tailor its services and solutions around the needs of each individual client. “Regarding some of the services that we provide, Prudent offers international investors the possibility of significant investment returns in our Brazilian short-term corporate credit business, we run regulated funds in both Luxembourg and Brazil to achieve this end. However, Prudent is not a hedge fund in the traditional sense as we solely invest in self-generated short-term corporate receivables through an operational business active in the Brazilian credit market.” After talking about some of the services that Prudent provides, this leads us on to the resulting success of the company itself. Giovanni explains how it feels to have been selected as the Most Outstanding Hedge Fund Manager – 2017, and how it can benefit the company in the long term. “Here at Prudent, the Prudent Family humbly accepts this award as a token of recognition of all the hard work put into creating a ground-breaking vehicle for international investors to invest in the highly lucrative Brazilian Capital Markets. Personally, I hope that the award will be recognized by the AI community and attract potential investors considering committing some Prudent investment capital.” Company: The Prudent Group Name: Giovanni Cataldi Email: Fund investment related questions: dennis@ Address: 2, Boulevard de la Foire, L-1528 Luxembourg Web Address: Prudent Group: A TeamApproach P 1711AI63 Part of this continuing success is that Prudent has been able to differentiate itself from similar firms within the industry, guaranteeing its clients and borrowers that they are the best option in which to commit to some capital. Giovanni alludes to the long-term relationships that the firm has built with man of its borrowers, and this is a sure sign of its success. “Prudent’s borrowers are very pleased with our offerings, execution, and appreciate the long-term approach we take in building our relationships. Many of the borrowers have formed business alliances with our staff members dating back some 10-20 years, which makes Prudent “their first call”. Additionally, as Prudent has grown, we have been lucky enough to acquire talented and seasoned veterans with a deep understanding of the market dynamics and the competition. Through leveraging the talent that has been brought aboard, Prudent will continue to improve our offerings with a goal of becoming a staple in the Brazilian short-term lending market.” Working within such a fast-paced industry, Giovanni and his team must ensure that Prudent remains on the cutting edge of any new developments, and he explains how the company are always in the best position to match and answer clients’ needs. “In order to stay ahead of other asset managers and exogenous economic and political variables, Prudent is constantly evaluating our current positions, investment processes, and assessing new strategies that fit our investor’s needs. For example, in less than six months Prudent has managed to enter the extremely profitable Brazilian credit card receivables business and created our own echo-system of card terminals, processing, and receivables discounting in which we are creating a possibility for the merchants to get rid of their banks. The business is run through a separately regulated FIDC, in which the Luxembourg SICAV SIF, the Prudent Investment Fund, is the sole investor. This is a good example of how Prudent strives to innovate and create diversified value for investors through multiple strategies. Throughout the company, the team believes that by expanding its geographic footprint in Brazil, both Prudent and its borrowers can benefit from a local presence and close culture. Currently, the firm has local Sales Teams in three main locations, two in Sao Paulo and one in Porto Alegre, as well as representatives in multiple other locations. “...the goal for Prudent is to identify and effectuate highly scalable, repeatable, and defensible transactions while utilizing downside risk mitigation strategies, such as insurance, overcollateralization, and extensive client monitoring.”